The holidays are rolling in—lights, parties, and maybe a few last-minute projects. But while you’re thinking about gift lists, don’t forget your business’s year-end tax checklist. Getting these items in order now can save headaches (and money) when tax season arrives.
Here’s your end-of-year checklist to keep holiday cheer, not tax fear, in your business:
1. Prepare 1099s & Employee Forms
If you’ve worked with independent contractors, freelancers, or employees, make sure all payments are accurately tracked.
- Send 1099s by January 31.
- Verify employee W-2 info.
- Check payroll records for accuracy—bonuses, extra hours, and holiday pay count too.
Getting this done now avoids scrambling at the last minute.
2. Review Payroll & Bonuses
Planning to give holiday bonuses? Make sure:
- Bonuses are properly accounted for in payroll.
- Tax withholdings are correct.
- Contributions to retirement plans are updated.
This ensures everyone gets what they deserve—and the IRS gets what it’s owed.
3. Track Deductible Expenses
Before December 31, look at:
- Office supplies and equipment purchases
- Business travel and client meals
- Professional development or subscriptions
Accelerating expenses where possible can reduce your taxable income for the year.
4. Estimated Tax Payments
If your business uses quarterly estimated payments, check if you need to make a year-end adjustment to avoid underpayment penalties.
It’s much easier to handle this now than to be surprised come April.
5. Review Your Business Assets
- Check depreciation schedules for any new equipment.
- Record any asset sales or retirements.
- Ensure capital improvements are correctly documented.
Accurate asset tracking maximizes deductions and keeps your books in tip-top shape.
6. Plan for 2026 Tax Strategy
Start thinking ahead:
- Anticipate income changes.
- Plan large purchases or investments.
- Review tax credits or incentives available in the new year.
A little planning now can make next year’s taxes a lot less stressful. Tax Planning and Preparation
Wrap-Up: Keep Calm and Close the Books
Year-end accounting doesn’t have to be scary. Following this checklist ensures your business is in great shape for the holidays—and sets you up for a strong start to 2026.
Next Step: Schedule a year-end review with Ledger Right. We can help make sure your books, payroll, and deductions are all in order—so you can enjoy the holidays stress-free. Contact Us
